Loading...
HomeMy WebLinkAboutOrd1989-615 . . . Sponsored by: Arvidson CITY OF SEWARD, ALASKA ORDINANCE NO. 615 OF AN ORDINANCE OF THE CITY COUNCIL OF THE CITY SEWARD, ALASKA, REPEALING AND RE-ENACTING TITLE 6 OF THE SEWARD CITY CODE, PURCHASING, CONTRACTS AND PROFESSIONAL SERVICES WHEREAS, Chapter 12 of the Charter of the city of Seward, Alaska, establishes the authority of the City Council to provide for purchasing and contractual procedures to be followed by the city; and WHEREAS, the City Council desires to set forth specific policy objectives for the city's purchasing and contractual function; and WHEREAS, current City Code provisions allow the city manager to bind the city by purchase order for the procurement of goods and services in an amount not to exceed $5,000; and WHEREAS, due to the increasing prices of goods and services, the Council wishes to grant the city manager authority to make purchases in an amount not to exceed $10,000 without requiring Council approval; and WHEREAS, the Council wishes to clarify the city's existing competitive bid and proposal provisions for the procurement of goods and services; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA HEREBY ORDAINS that: Section 1. Title 6 of the Seward City Code is hereby repealed and re-enacted to read as follows: TITLE 6 PURCHASING, CONTRACTS AND PROFESSIONAL SERVICES Chapter 6.01 General Provisions 6.01.010 Pur~o~e. The purpose of this title is to: A. max~m~ze the purchasing value of public funds in the procurement of goods and services for the city; B. provide an efficient system for the purchase of goods and services without creating unreasonable administrative burdens and restrictions; -1- . . . CITY OF SEWARD, ALASKA ORDINANCE NO. 615 C. provide flexibility in the methods of purchasing goods and services in order to meet the goals and objectives of the city as determined by the City Council; D. provide for the fair and equitable treatment of all persons involved in the provision of goods and services to the city; and E. prevent collusion and anti-competitive practices by the providers of goods and services. 6.01.015 Interpretation. This Title is to be interpreted and applied in order to further the objectives stated above. 6.01.020 Compliance with grant conditions. When a procurement involves the expenditure of state or federal grant assistance or contract funds, the procurement shall be conducted in accordance with any applicable mandatory state or federal law and regulation. Nothing in this code shall prevent the city from complying with the terms and conditions of any grant, gift or bequest which is otherwise consistent with law. 6.01.025 Purchase order: form of expenditures generally. A. Every undertaking of the city involving the expenditure of city money shall be in writing in the form of a purchase order, credit card, travel voucher or of a contract, as may be appropriate, and no officer or employee of the city shall have authority to enter into any oral agreement involving the expenditure of money. The city manager and city clerk shall sign all contracts on behalf of the city, and the city manager and the finance director shall sign all purchase orders. B. Separate purchase orders shall not be issued for the purpose of circumventing the requirements and limitations of this title. C. Purchase orders shall be issued upon requisitions signed by the head of the division. All requisitions shall be filed with the purchasing agent and no purchase shall be made until an order has been obtained from him. D. In the absence of the city manager, a person designated by him, in writing, is hereby authorized to sign for the city manager purchase orders for materials, supplies and equipment which do not exceed five hundred dollars ($500.00) in value, in conforming with control procedures to be established by the city manager for that purpose. 6.01.030 Certifying purchase orders and contracts. The city finance director shall attach to each contract a certificate signed by him, and there shall be attached to and included in each purchase order a certificate of the finance director that the established amount of money to meet the obligation of the city by such contract or purchase order has been lawfully appropriated and -2- . . . CITY OF SEWARD, ALASKA ORDINANCE NO. Q12 in the proper form and in the process of collection to the credit of the fund involved, the current fiscal year, and to involve expenditures of money in future years, the finance director shall only certify as to money estimated to be paid by the city thereunder during the current fiscal year. 6.01.035 Inspection or work. materials. et.. prior to payment. A. Prior to the making of partial or final payments on contracts, the city manager shall certify that the conditions of the contract for which payment is made have been complied with. In the case of partial payments, such payments shall be made on estimates of the amount and value of work accomplished. The certificates of estimates shall include the amount and value of the work accomplished, the materials used, since any preceding estimate. Such certificates of estimates shall further indicate that if a greater proportion of the contract has been performed by the contracting party than that which is represented by the request for partial payment, the request only shall be paid, in addition to any preceding partial payments. Upon receiving the certificates, estimates or invoices properly certified, the finance director shall then issue warrants in payment. B. The responsibility for the inspection and acceptance of all materials, supplies and equipment shall rest with the division head concerned. 6.01.040 Payment of claims. A. The city finance director shall pay claims for which appropriations have previously been made, when the claim was incurred by purchase order as herein provided, or by agreement approved by the City Council. B. The finance director shall require invoices to be submitted to him by the vendors, and that the head of the department or division of the city concerned shall submit to him a copy of the purchase order so certified to the effect that the goods or services for which the purchase order and invoices are rendered have been delivered in the manner, quantity and quality specified, prior to the issuance of the city's warrant and payment thereof; whereupon the city's warrant shall be properly issued in payment. C. Claims for transportation expenses and allowances submitted in connection with traveling on official business will be allowed by the finance director only when such expenses have been approved in advance by the city manager and are submitted on proper forms provided by the city and certified by claimant. -3- . . . CITY OF SEWARD, ALASKA ORDINANCE NO. ~ Chapter 6.05 Incidental Purchases 6.05.010 Purchases of S10.000 or less. The city manager is hereby authorized to bind the city by purchase order without advertising or previous action by the City Council for the payment for labor, services, materials or other valuable considerations, in amounts not exceeding ten thousand dollars ($10,000) in anyone item; provided, that reasonable efforts have been made to provide the city with the lowest and best prices obtainable, and provided that the city manager shall notify the City Council at its next regular meeting of any purchases between five thousand dollars ($5,000) and ten thousand dollars ($10,000). Those efforts may include, but are not limited to, the written quotations or advertising for sealed bids. The city manager may reject any or all quotations or bids and may waive minor irregularities in the quotations or bids. 6.05.015 Solicitation. quotations. records. A. Solicitation. written quotations may be solicited by telephone, in person or in writing from interested persons or firms. B. Ouotations. A detailed record shall be made of the quotations received and shall include the firm's nam7, person contacted, detailed description of materials or serv~ces, and price. Prices in published mail order catalogs may be considered to be written quotations. C. Records. A record of all such incidental purchases and the quotations submitted in competition thereon shall be kept and such records shall be public. Chanter 6.10 Major Purchases ARTICLE I - GENERALLY 6.10.110 Definition. For the purposes of this chapter, major purchases are those purchase orders or contracts for labor, services, materials, or other valuable considerations which exceed ten thousand dollars ($10,000) in anyone item. 6.10.115 Exemptions from competitive procurement procedures. The provisions of this title requiring competitive procurement procedures need not apply to the types of services and/or contracts set forth in S 6.10 .120-S 6.10.130 below; and the City Council -4- . . . CITY OF SEWARD, ALASKA ORDINANCE NO. 615 shall approve such contracts by resolution. shall preclude the city from utilizing any forth in this code in those instances. Nothing in this title of the procedures set 6.10.120 exempt. A. chapter Specialized professional services products and Restrictions and provisions of Article II and III of this shall not apply: 1. to the purchase of a patented article; 2. where an emergency makes the delay incident to competitive bidding unreasonable; 3. where an emergency makes the delay incident to the procedures for rejecting a low bid set out in S 6.10.155 unreasonable; 4. to the placement of insurance coverage; 5. to supplies, materials, equipment or contractual services which can only be furnished by a single dealer, or which have a uniform published price; 6. to supplies, materials, equipment or contractual services purchased from another unit of government at a price determined by the city manager to be below that obtainable from private dealers, including war surplus; 7. to contractual services purchased from a public utility corporation at a price or rate determined by state or other government authority; 8. to the purchase of professional services. Professional services are those that require special knowledge and judgment that includes analysis, evaluation, prediction, planning or recommendations and which result in the production of a report or the completion of a task. Examples of professional services include accounting, architectural, appraisal, engineering, land surveying, financial consultation, legal services, planning, economic analysis, computer programming and system analysis, insurance consultation and risk analysis, and other specialized services. Any professional services contracts shall not exceed two years except for completion or work in progress under architectural or engineering contracts. B. The city may utilize competitive bids obtained by other governmental units. 6.10.125 Purchase of used eauipment exempt. Restrictions and provisions of this title shall not apply where the City Council determines that the public interest would be best served by the purchase of used equipment and, by resolution, authorizes the city manager to locate and purchase a particular type and quantity of used equipment. 6.10.130 Where competitive bid proposals not in public interest. Restrictions and provisions of this title shall not -5- . . . CITY OF SEWARD, ALASKA ORDINANCE NO. 615 apply where the City Council determines and makes written findings that the public interest would be best served by not requiring competitive bids/proposals. The best interest determination may be based upon, but is not limited to, a finding that the services or articles can be procured at a lower cost without competitive bidding. 6.10.150 Award onlv to responsible bidder/proDoser. A contract awarded under this chapter shall be made only to a responsible bidder/proposer. The city manager may report to the City Council and recommend rejection of a bid or a proposal on the basis of the following criteria: A. The skill and experience demonstrated by the bidder/proposer in performing contracts of a similar nature~ B. The bidder' s/proposer' s record for honesty and integrity~ C. The bidder's/proposer's capacity to perform in terms of facilities, personnel and financing~ D. The previous and existing compliance by the bidder/proposer with laws and ordinances relating to the contract~ E. The number and scope of conditions attached to the bid/proposal~ F. The bidder's/proposer's past performance under city contracts. If the bidder/proposer has failed in any material way to perform its obligations under any contract with the city, the bidder/proposer may be deemed a non-responsible bidder/proposer. 6.10.155 Not resDonsible bidder/proposer finding. A report that the low bidder/proposer is not responsible shall delay the award of the contract until after completion of the procedures outlined below. A. If the city manager or his designee reports to the City Council that the lowest bidder/proposer is not responsible, notice shall immediately be sent to the next two lowest bidders or the next two most preferred proposers and the report shall be placed on the agenda of the next scheduled council meeting~ provided that the next council meeting allows two weeks' written notice to the lowest bidder and the next two lowest bidders or most and next two most preferred proposers. B. At the council meeting, the lowest bidder or most preferred proposer and the city manager or his designee shall have the opportunity to be heard regarding the adverse report. C. The City Council shall then determine whether it is in the best interest of the public to affirm, reject, or modify the city manager's report and in so doing make written findings to support its determination. The written findings shall be based on, but not limited to, the criteria set out in S6.10.150. 6.10.160 Where fundina insufficient. If the lowest responsive and responsible bid or proposal exceeds the amount of -6- . . . CITY OF SEWARD, ALASKA ORDINANCE NO. 615 funds available for the procurement, the scope of the procurement may be reduced to bring its estimated cost within the amount of available funds. The city shall issue a new invitation for bids or requests for proposals for the reduced procurement, or, upon a finding by the city manager that the procurement is in the best interests of the city and upon notice to the City Council in the manner set forth in S6.10.310, Subsection B, he may negotiate with the three lowest responsive and responsible bidders or the three most responsive and responsible proposers in succession, beginning with the lowest bid or most responsive proposal, and may recommend to the City Council for award the reduced contract ARTICLE II - COMPETITIVE SEALED BIDS 6.10.210 Use of competitive bids. When the cost of goods or services required by the city exceeds the sum of ten thousand dollars ($10,000), the city shall seek and preserve a competitive environment by utilizing competitive bids as set forth in this Article. 6.10.215 Competitive sealed bids - public notice. The City Clerk shall call for bids by advertising at least once in a newspaper of general circulation in the city not less than two weeks prior to the date set for receiving bids. 6.10.220 Bid security. All bids must be accompanied by a certificate of deposit, or certified check or draft, or a cashier's check or a draft on some responsible bank in the united States, in favor of and payable at the site to the city, for an amount equal to five percent (5%) of the bid, such deposit not to exceed fifty thousand dollars ($50,000). If the bidder to whom the contract is awarded shall, for fifteen (15) days after such award, fail or neglect to enter into a contract and file any required payment or performance bond, the city clerk shall draw the money due on the certificate of deposit or check or draft, and pay the same into the treasury, and under no circumstances shall it be returned to the defaulting bidder. I In lieu of the foregoing, any bid may be accompanied by a surety bond, equal to the amount stated above, furnished by a surety authorized to do a surety business in the state, guaranteeing that the bidder will enter into a contract and file the required bond within such period. without limiting the foregoing, no plea or defense of mistake by a bidder shall be available in any action by the city for the recovery of any deposit, or in any action on any surety bond or as a defense to any action based upon any refusal to execute a contract. 6.10.225 Bid form. All bids shall be placed in a sealed envelope and delivered to the city clerk, and opened by the city -7- . . . CITY OF SEWARD, ALASKA ORDINANCE NO. 615 clerk or a person designated by him, in public, at the time and place designated in the notice inviting bids. 6.10.230 Bid award. The contract shall be let by the City Council to the lowest qualified responsive and responsible bidder; provided, that if the lowest bids are approximately equal, that is within the lesser of five thousand dollars ($5,000) or five percent (5%) of each other, preference may be given to local bidders who maintain and operate businesses within the boundaries of the Seward electrical utility service area. The City Council may reject any or all bids and may waive minor irregularities in the bids. 6.10.235 Return of bids. The city clerk shall return to the apparent unsuccessful bidders their certificates of deposit, drafts, checks or cash; provided, however, that the clerk may retain the certificate of deposit, check, or draft of the three (3) apparent low bidders until after award and signing of a contract. ARTICLE III - ALTERNATIVE PROCUREMENT PROCEDURES 6. 10.310 Al ternati ve orocurement procedures. A. Not- withstanding the requirements of S 6.10.210 et. seq., a department head may recommend an alternative procurement procedure to the city manager if such procedure will best serve the needs of the city and accomplish the objectives of this title. The city manager shall review the recommendation and must approve it, in writing, before any procedures other than those required by S 6.10.210 may be utilized. B. The city manager shall notify the City Council of his decision to use any procedure other than competitive sealed bids and the reasons for his decision at the next regularly scheduled City Council meeting. The report shall also include a description of the selection process and criteria that will be used to analyze and recommend award, if criteria other than price are to be used. 6.10.315 Competitive sealed orooosals. The city may utilize request for sealed competitive proposals for goods and services, including design/build services; provided that the requirements of S 6.10.310, Subsection B, have been met. 6.10.320 Notice. Notice of requests for proposals shall be given in accordance with S 6.10.215 and the city may use additional means considered appropriate to notify prospective proposers of the intent to enter into a contract through competitive sealed proposals. 6.10.325 Reauest for proposals content. A. Generally. A request for competitive sealed proposals must contain the date, time and place for delivering proposals, a -8- . . . CITY OF SEWARD, ALASKA ORDINANCE NO. 615 specific description of the supplies, construction, or services to be provided under the contract, and the terms under which the supplies, construction, or services are to be provided. The request for competitive sealed proposals shall also contain requirements of evidence of a valid Alaska business license, contractor's license and professional registration as appropriate, and may require a list of subcontractors and other information as may be requested by the city. B. Selection Criteria. The request for proposals must provide a description of the factors that will be considered by the City when evaluating the proposals received, including the relative importance of price and other evaluation factors. 6.10.330 Openina of DroDosals. The city shall open the proposals so as to avoid disclosure of contents to a competing proposer during the process of negotiation. A register of proposals containing the name and address of each proposer shall be prepared. The register and the proposals themselves are open for public inspection after a notice of intent to award has been issued by the City. To the extent that the proposer designates and the city attorney concurs, trade secrets and other proprietary data contained in the proposal documents are confidential. 6.10.335 Discussions with DrODosers. A. Following review and evaluation of the proposals, the city may prepare a short list of the proposals which most nearly meet the requirements set forth in the request for proposals. The city may then request supplemental information or enter into discussions with the proposers listed therein for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation requirements. B. Upon receipt of additional or clarifying information, the short listed proposers shall be ranked and negotiations may be initiated with the first ranked proposer. If an agreement cannot be reached, that proposer shall be dropped from the list and negotiations initiated with the next ranked proposer. C. These proposers shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals, and revisions may be permitted after submissions and before final negotiation of the contract for the purpose of obtaining best and final offers. In conducting discussions, the city may not disclose information derived from proposals submitted by competing proposers. 6.10.340 Award of contract. A. The city manager shall make a written recommendation for award to the responsible and responsive proposer whose proposal is determined to be the most advantageous to the city, taking into consideration the price and the evaluation factors set out in the -9- . . . CITY OF SEWARD, ALASKA ORDINANCE NO. 615 request for proposals. Other factors and criteria may not be used in the evaluation. B. The contract shall be let by the City Council to the most qualified responsive and responsible proposer. The City Council may reject any or all proposals and may waive minor irregularities in the proposals. 6.10.350 Prequalification of bidders/proposers. Pre- qualification of bidders or proposers under Chapter 6.10 is permitted if the city manager determines that prequalification is in the public interest. Justification for prequalification may include but shall not be limited to the need to restrict bidding to firms having special knowledge and experience in the work required, or a need to expedite contracting procedures. A request for Letters of Intent shall be advertised in the manner prescribed in Section 6.10.215. The published request shall describe the task(s) to be performed, the minimum qualifications of firms to be selected, and procedures for evaluating those firms. Evaluation criteria may include, but shall not be limited to, the same factors as listed at S6 .10.150 for determining a responsible bidder. Firms will be either approved or rejected, with no rating designated to compare firms within either the approved or rejected category. At least three firms must be included in the approved category. The City Council shall approve the prequalification list by resolution. Requests for bids or proposals will be solicited from only those firms on the approved list and only those prequalified firms shall be allowed to submit bids pursuant to this section. Section 2. This ordinance shall take effect ten (10) days following its enactment. ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, this 10th day of April, 1989. THE CITY OF SEWARD, ALASKA ~~ L" 1....;" BARR . GIESELER, MAYOR AYES: NOES: ABSENT: ABSTAIN: GIESELER, DUNHAM, MEEHAN, NOLL, O'BRIEN, SIMUTIS NONE HILTON NONE -10- . . . CITY OF SEWARD, ALASKA ORDINANCE NO. 615 ATTEST: (City Seal) APPROVED AS TO FORM: PERKINS COlE, Attorneys for the City of Seward, Alaska 7~ /1/ 4 Fred B. Arvidson City Attorney Introduced By: Simutis/Meehan Introduction Date: 02/27/89 Public Hearing Date: 03/13/89 Enactment Date: 04/10/89 -11-